g会decline forever吗？

问题如下：

German Resources is involved in coal mining. The company is currently profitable and is expected to pay a dividend of €4 per share next year. The company has suspended exploration, however, and because its current mature operations exhaust the existing mines, you expect that the dividends paid by the company will decline forever at an 8 percent rate. The required return on German Resource’s stock is 11 percent. Using the DDM, the value of the stock is:

选项：

A.

21.05

B.

19.83

C.

23.08

解释：

This problem can be addressed using the Gordon growth model with constant expected negative growth. The estimated value of the stock is: